As the Federal Reserve gets ready to scale back its quantitative-esing policy, many financial sectors are bracing for impact. How should you invest in real estate now? Marc Halle, managing director at Prudential Real Estate Investor, joins MoneyBeat. Photo: Getty Images.

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... ay ay ay mm mm ... or reserve its way to scale back its QE policy ... and financial sectors are bracing for impact one of those of course ... in the real estate sector the housing market ... how should you invest in real estate now more Halley managing director ... of Prudential real estate investor joins us to talk about it ... Mark thinks Cullen on the show the children I mentioned your vacation day and gas became a decision vacation spot gas that is South Beach ... south France ... and downs made to the nominee to rank high on ... so ... real estate rates of gun out we've seen it there was talk about how to ... affect the housing market ... what do you think is going to ... shore ... while I'm in a portfolio ... of ... weeks publicly traded real estate blogs ... and rates going up are bad for any financial asset ... and it's not great for real estate but it's like a see saw when pushed on one end what happens to other ... rates going up in a vacuum ... or not a positive ... for real estate but if rates are going up because the economy's doing better ... that's a good thing for real estate ... real estate so simple business supply and demand ... so if rates are going up ... and demand is increasing ... because we're seeing increasing job growth ... that's good for for the real estate economy rates going up in a vacuum or a negative for the ... real estate sector ... so what ... what what areas the Lihir I find obvious to shore in front of or investments in there what it is doing well right now would soon or they were in focus ... sure whatever the global real estate securities fund with a team of people around the world investing in the U S Euro Asian Latin America ... buying publicly traded real estate securities ... when you think about real estate don't think about it as a specific asset class ... think about like a bond portfolio think about to ration ... so short-term vs long-term ration ... so what we can do is position our portfolio and each area around the world ... to take advantage of maturation cycle ... so if our economy is picking up things are doing better here ... we want to be on the shore and the duration ... we wanna be like hotels ... apartments where rents can change overnight ... where in multifamily sixty five percent of all assets ... are turning over every year ... versus the long end of that which could be health care companies which almost like bonds which will decrease in value ... as interest rates going up ... to say we like racial malls we think there's some of the imbalance between supply and demand ... Heidi and classy malls ... weeks are doing extremely well sales are going well ... aam and the values continue to go out ... there like multifamily we like hotels short end of that restoration ... as you mentioned single family residential in their forty making sure cameras and I'm not ... sure it's not meeting up with structure your ... portfolio but is there isn't here ... yet well ... there are ways to invest material most of the season's investment ... um ... I'm a big believer in supply and demand ... and I think we'll estate is a very very welcome or to make ... so New York City Park and the new ... co ops have a very different value ... than the inland Empire for Tucson and Phoenix ... so in the single family saga world ... and again forget about national statistics look at local markets what do we use the job ... what do we see a lack of new supply a look in reducing barriers to entry ... the bill was a markets were one of the end ... new York's doing extremely well because we have lots of barriers to entry ... it's hard to build a new condo on Park Avenue are this that new ... GeForce seeing good job ... you're seeing great technology but our job growth are seen ... on the evolution of the tech sector in York City which never existed by ten fifteen years ago ... so you wanna see the combination of ... no new supply ... and good job growth no specific markets what do extreme well Southern California ... ports of Miami are starting to come back ... new York Boston San Francisco ... doing quite well ... that could bring him back or started ... how much time he's been walking with the Fed's going to go ... um you know we spend some time I wanna understand what the Fed is doing ... real estate a long-term asset ... aam ... were not investing between what happens ... between today and the end of the quarter to its real estate nothing happened just no inventions the snow creations ... I don't wake up in someones built a million square feet across the street it just doesn't happen ... so for us we approach the market as institutional investors ... I wanna see what's going happen the next twelve to eighteen months ... and then by today ... the Fed's creating lots of noise today ... that he is the Economy sunscreens for getting back were seeing two percent GDP growth ... my fear ... is that we start to pull away stimulus too soon before the economy recovers ... aam I think the Fed has control of that and understands that what ... the economy starting to get a little better ... than the Fed showed increases and decreases life support ... over time ... write what we want to see that the other seven was built to the job we wanna see ... earnings growth we wanna see the economy please get to that adds to the US which go through what we would ... all of us of the great ... but I needed to see that before we we started moving on ... it Mark Kelly Prudential think you're a much thank God